125.3513/10–849: Telegram

The Consul at Dairen (Paddock) to the Secretary of State

316. Chao Shou-yu states Chinese secret police met him nights of October 6 and 7. Second night he signed 4 statements under threat personal safety. In summary:

1.
He works for American imperialism.
2.
American Consuls in China are here for aggressive purposes.
3.
He will tell all he knows re Dairen Consulate.
4.
He will not tell of interviews.

I did not blame his actions. Without signing, his position hopeless; perhaps this way he has chance survive.

His next meeting October 10.

Possibility exists of course of similar statements by Chao Yi-hsien. Neither Chao ever had contact with confidential material.

This possibly build-up for spy charges similar to Mukden Consulate. Department should note that Mukden spy story of immense propaganda value; still used regularly in political classes in factories, etc. Temptation to Soviets and Chinese Communists to repeat their success here is obvious.

Three-day meeting of highest local officials reported now at Port Arthur. Perhaps this to determine new Soviet-Chinese relations in naval base and particularly Dairen.

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Recurrent rumors refer Soviet soybean ship leaving Dairen next couple days for Japan. If Soviets intend for us to use this or any other ship, no indication.

No information from Department why its plans evacuate staff by ship from Korea by October 4 not materialized.

Sent Department, Department pass Moscow 170.

Paddock